This was down 8% from the year-ago quarter, reflecting reduced volumes in Asia but partially offset by better performance in Europe and the US, the firm said.

Total investment banking revenue was $1.11 billion ($1.10 billion expected), down 23% from last year.

Advisory revenues were up 17% from last year on higher levels of completed M&A, while equity underwriting revenues were down 46% from the year-ago quarter, which the firm said reflected lower market volumes. Debt underwriting was down 35% on lower bond and loan fees.

Wealth management revenues of $3.81 billion were down 2% from $3.88 billion a year ago.

In the same quarter last year, Morgan Stanley reported earnings per share of $0.85 ($0.74 expected) on revenue of $9.7 billion ($9.14 billion expected). Excluding one-time items, earnings per share were $0.79.

In the first quarter, Morgan Stanley beat expectations but profit dropped by more than 50%. It reported diluted earnings per share of $0.55 ($0.47 expected) on revenue of $7.88 billion ($7.76 billion expected).

The big story during the second quarter was the UK's decision in June to leave the European Union, which sent shockwaves through markets and could deter central banks from raising interest rates anytime soon.

In the short term, that appears to have been good news for banks' trading revenues, but the long-term impacts are less rosy. Bank profitability is based largely on the rate at which banks make loans. Lower global interest rates, in turn, negatively affect bank bottom lines.